Foreign investors can invest up to 40% in Ashok Leyland

MUMBAI: Reserve Bank has allowed foreign investors to invest up to 40 per cent of the paid up capital in Ashok Leyland.

“Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) can now invest up to 40 per cent of the paid up capital of Ashok LeylandBSE 1.34 % Limited under the Portfolio Investment Scheme (PIS),” RBI said in a notification.

The company passed resolutions at its Board of Directors’ level and a special resolution by the shareholders, agreeing for enhancing the limit for the purchase of its equity shares and convertible debentures by FIIs/RFPIs.

The purchases could be made through primary market and stock exchanges, RBI said.

As of quarter ended June 30, FIIs held 20.21 per cent in Ashok Leyland, as per data available on BSE.

FIIs, NRIs and PIOs (Persons of Indian Origins) can invest in primary and secondary capital markets in India through PIS.

The RBI monitors the ceilings on FII/NRI/PIO investments in Indian companies on a daily basis.

Shares of the company closed 1.69 per cent lower at Rs 87.45 per share on BSE.